Members of Baird’s Global Technology & Services Group recently hosted our annual Governance, Risk & Compliance (GRC) Dinner & Networking Reception in London. The exclusive event brings together industry-leading executives, CEOs and founders to connect and discuss the current state of the industry and where it is headed. Along with informal networking, attendees enjoyed a panel discussion focused on recent attention-grabbing news headlines about deregulation and the potential impact on the GRC vendor ecosystem.
Moderated by Luke Stepien, Director in Baird’s Global Technology & Services Investment Banking Group, the panel included Marc-Henri Chamay, CEO of Aosphere; Pippa Begg, CEO of Board Intelligence; Mathew Gilbert, Managing Director at Capstone E.U.; and Archie Stebbings, Partner at Oliver Wyman.
In the below, we recap the discussion and highlight key takeaways from our panelists.
GRC leaders from Capstone E.U. are not expecting a wave of deregulation in Europe in reaction to the events in the U.S. Rather, they anticipate E.U. and U.K. policymakers will take a more pragmatic, targeted approach to regulation.
The watchword in Europe is simplification, not deregulation. The actions and rhetoric from the Trump administration have accelerated the political desire to cut red tape in Europe with the focus on domestic growth agendas and boosting economic competitiveness.
Mathew Gilbert, Capstone E.U.
Capstone leaders noted the potential for a reduced reporting burden on firms in areas such as transaction reporting but believe regulator expectations around data quality are increasing. Detecting market abuse and enforcement action against noncompliance will remain supervisory priorities.
There is an emphasis on simplifying existing regulations, rather than completely dismantling them. As regulators begin to reduce oversight or reporting requirements, senior management, boards and outside vendors are expected to take on more accountability.
Whilst regulators might pare back some of their required reporting, the board’s responsibilities remain.
Pippa Begg, Board Intelligence
Vendors are stepping up in many of these situations to help regulated entities manage these priorities and deliver compliance outcomes efficiently.
Archie Stebbings, Oliver Wyman
Deregulation, or simplifying current regulation, does not equate to a reduction in compliance obligations. Compliance is simply evolving, not disappearing, and firms still face complex requirements.
As a global GRC vendor, we believe the journey towards compliance is ongoing. While deregulation may seem like a relief, financial services firms still face the intricate task of operationalizing compliance across an ever-growing number of jurisdictions.
Marc-Henri Chamay, Aosphere
Even with reduced reporting, the expectations around data quality and integrity are increasing. Firms are investing in data management, analytics and workflow tools to meet the changing expectations. In many cases vendors are stepping in to help operationalize compliance efficiently.
We’re seeing a premium being placed by this community on better sourcing and management of data, advanced analytics / reporting tooling and complementary workflow support across multiple industries.
Archie Stebbings, Oliver Wyman
Baird’s GRC team welcomes the opportunity to discuss these themes on how we can assist your business growth and strategic objectives.
